Yes, Buy Low and Keep Invested is the secret sauce of the investment strategy followed by big and famous investors like Warren Buffet and Charlie Munger. In fact, any time is a good time to start investing in mutual funds through SIP route for long term wealth creation.
Stock markets in India have corrected around 7% (as on Feb-22) from the highs reached in Jan 2018. However, they continue to be volatile in wake of global economic events and the stress being faced by Indian public sector banks. But do you know that volatility can be a boon for long-term investors? Monthly SIP investments in mutual funds benefit from volatility and generate higher long term returns through rupee cost averaging.
More benefits of SIP investing are
I. Levels out market fluctuations — Since mutual funds units are being bought every month, short term market fluctuations are levelled out.
II. Brings discipline to investing — By investing a fixed amount out of your regular savings, you will be able to build a corpus for your long term financial needs. Money not invested often gets spent on consumption and compromises the long term goals of the investors!
SIP investment into a diversified portfolio of Equity mutual funds is an investor’s best friend to long term wealth creation.Upwardly’s Diversified Equity Portfolio has generated annualized returns of 17% in 3 years and 28% in 5 years, doubling money in just 4 years!
Keep these guidelines in mind to become a successful SIP investor:
1. Don’t give up in a bear phase
2. Increase your investment amount every year
3. Check your funds’ performance annually
4. Map your funds to goals